Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 883 - AT - Income TaxTransfer pricing adjustment - selection of comparables - Held that:- As relying on CISCO Systems (India) Pvt. Ltd. Vs. DCIT, Bangalore [2014 (11) TMI 849 - ITAT BANGALORE] Infosys Ltd., Kals Information Systems Ltd. and Bodhtree Consulting Ltd. companies not to be comparable with a captive software development service provider. As far as Tata Elxsi Ltd. (segment) is concerned,on going through the segmental details of services provided as contained in annual report,, we are of the view that unless proper analysis is made with regard to the functions of both the companies it cannot be said that services performed/provided by Tata Elxsi Ltd. is high end services whereas services provided by assessee are low end services. As the issue requires thorough examination in so far as it relates to exact nature of services rendered by both the companies, we remit the comparability of the aforesaid company to the file of AO/TPO for considering afresh after affording due opportunity of being heard to assessee. Non-consideration of provision for bad and doubtful debts as part of operating cost while computing margins of comparables - Held that:- In principle we agree with the contention of ld. AR that provision for bad and doubtful debts and bad debts should form part of the operating expenditure. As relying on Kenexa Technologies (P.) Ltd. Versus Deputy Commissioner of Income-tax, Circle -2(1), Hyderabad [2014 (11) TMI 587 - ITAT HYDERABAD] we remit this issue to the file of AO/TPO for considering afresh in the light of the said decision of the coordinate bench. - Decided in favour of assessee for statistical purposes. Excluding communication expenses from the export turnover while computing deduction u/s 10B - Held that:- As relying on CIT Vs. Gemplus Jewellery [2010 (6) TMI 65 - BOMBAY HIGH COURT] and ITO Vs Saksoft Ltd [2009 (3) TMI 243 - ITAT MADRAS-D] we direct the AO to exclude the communication expenses from export turnover as well as total turnover while computing deduction u/s 10B of the Act.
|